address the operating deficits nor does it solve all of the problems that have been identified. about $10 billion have been identified as a need for transportation. and this leaves a gap of 6.3 billion. the task force identified what we believe is required in terms of infrastructure and we'll be proposed some new revenue sources to fund a portion of that gap. so the three recommendations that will be brought forward from the task force is to invest in programs with the greatest impact to first

maintain the current transportation system which we found in great disrepair and enhance the system and sfand -- expand the city system to meet new growth and also set to pursue three new revenue services combined to address that significant portion of that gap and as well as to continue to support and seek additional state and federal funding sources to support policies that will bring in more transportation dollars into san francisco. so, after taking a look at the needs, the task force looked it is needs to repair the core system, to enhance and expand it and is recommending more of the half of the funds be allocated towards core. the reason is we found that the vehicles are in disrepair, the

facilities to maintain those vehicles need to be repaired and replaced the rails and overhead fixtures as well as all the signals are also outdated and need to be replaced and if the city attempts to add to the current transportation system on an infrastructure that is so weak, well not be able to successfully provide the kind of reliable and safe transportation system that the riders expect and deserve. so the investment plans looks and streets and the fleet and add the network enhancements already under way, biking and

streets improvement and complete and safe streets as well as providing some funding to our regional partners, cal trans and bart. the streets and signals improvement would benefit the eastern neighborhoods as it would on a citywide basis and this would greatly improve the pedestrian right of ways and experience as well as bicycle and of course public transit the rehabilitation of the vehicle fleet also would enhance the eastern neighborhood requirements because the plan over the next 15 years together with the mtc lot allotment would rehabilitate in the kind of schedule stated as good repair and replace some of the smaller vehicles with larger ones.

rapid network enhancements are focused in the market street as well as gary blvd and funding the transit effectiveness project improvements mentioned already here for a portion of the eastern neighborhoods. bicycle and pedestrian safety improvements as well is on citywide and many of those improvements are in the neighborhoods and accessibility similarly. a safe and complete street is a great example in some of the newest neighborhoods in san francisco where street trees and more room for pedestrians and bicycles have greatly enhanced the neighborhoods and are very well received by both the residents and the bicycle

and pedestrians. and then cal train and bart enhancements coming into downtown areas would also favorably impact the eastern neighborhoods. this is a chart, i don't know whether people can see it. these are the priority development area neighborhood investments so that includes eastern neighborhoods could apply for these funds and will be programmed in. a note on the transportation task force work, we identified buckets of investments if you will, categories and then it will be up to the city's system capital planning, the mta, public works to see how much funding. about 87 percent of the funds in the

investment plans is dedicated to citywide and neighborhood improvements. 46 percent of investment plan is dedicated to enhancing and expanding the current system and many of these projects for the eastern neighborhood plan would fall into these two categories. and then finally projects that would benefit the eastern neighborhoods includes complete streets and street paving which are street paving in particularly is funded in it's entirety almost to provide a good transportation index. new potential revenues is important to the task force as is as well to the eastern plan to provide resources. this transportation project is foremost. we also believe the money if we are able to raise it for this plan

will attract other funding sources, will be seed money or local matches for additional funds. so, in order to make a big dent in the needs and to fund them, the task force is recommending three new revenue sources, two $500 million in revenue bonds in a year and year after dedicated to improvements. and second vehicle license fee which has been set at 2 persona number of decades and early 2000s to 2.#6 5 and increased the vlf to its full 2 percent cap in reservation for the task force

and a couple years later proposing a sales tax dedicated to city improvement. this is the projected plan for the next 15 years. what's happening next year? >> that's going to depend on the board of supervisors to develop the time to do so. >> your recommendation for new revenue is so far in the future. my question is at least, last year, 5 years ago when we were going through planning did you identify revenue sources that are being utilized today. i'm looking for something more in the short-term. >> as part of the transportation task force work we did look at the existing funds that are available towards transportation and to improve the infrastructure.

there are federal grants. some state grants. there is money that comes from the metropolitan transportation commission and there is a general fund subsidy to about $4 hundred million and there is a capital plan within the city that prior advertises some -- prior advertises some of the fund money. >> i heard from you and others and adam about potential future funding sources, but i think what i'm looking to hear and probably many members in the audience are specifics. you say federal grants. what are specifics, do we have applications pending at this time, have we identified these sources, or is it a big, hey, we are looking for federal grants. what was the focus?

>> the mta does receive on going federal grants to do vehicle replacements. paving is a local responsibility. so a lot of the better street work needs to be funded locally. as you know the impact development fees is the beginning of the pool of funding available for eastern neighborhoods. and this is one of the reasons that the mayor asked the transportation task force to tase a look at what other options are available above and beyond what's already been identified because clearly there is not enough money to meet the needs of both the eastern neighborhoods and the other growth areas as well as the basic system. >> okay. i think we've got someone who is going to chime in here. >> monique is talking about the future and i will talk about the past. i'm john brewer with mta. the question you are

asking is 5 years ago is what our plans and what sources we looked at and how we executed on that plan 5 years ago. i think adam got to some of that to each extent. each area develops and certain amount of impact fees which is what we did with the mta and other transit improvement and the others of the sales tax which supports many projects and you as towards the board enforce those dollars in the eastern neighborhood and planning and design are sources that we use to move those types of projects forward. there is the o bad grants that are released throughout the city. we are recently making improvements in that area and traffic and safety and bicycle

improvements. there are funds and federal funds that will apply to this area that we are looking at now. we'll look at other grants such as highway improvement grants as it becomes necessary on data we get throughout the city, there is numerous grants that we are looking to constantly close the gap as you have noted with the eastern planning area. we use the impact fees to leverage those grants and make it more competitive for those sources and we continue to do that is an example as well as other projects. 16th street where we are going to use development impact fees currently with what we have not enough to fully fund the project but to get the design started, start the community outreach work and figure out what transit improvements are necessary. the grants i talked about as projections for the future as they become available we are first in line to take those.

that's the strategic plan. 5 years ago we looked at what we had. as monique noted and the work is how do we try to fill that gap. one example also is a proposition b street bond that was passed in 2011 and road repaving to get into that infrastructure. things have been done. acknowledge it's not enough, we know that. the assessment and transportation task force report has gotten to that. so there has been a plan, we have been executing on it. and i'm happy to answer any other questions on more specific sources. >> okay. stick around. we may have more questions for you. thank you, monique. yukon with your presentation. >> i just want to point out the transportation commission really responds to the mayor's task force work is proposing

$7.4 billion in a charge grant. >> supervisor campos? >> thank you, i happen to serve on the atc and what process will be followed remains to be seen. it's not clear how quickly or not so quickly this process will go through. i do have some concerns about the transportation task force's recommendation and as it currently stands there is going to be some difficulty in getting a lot of people in some communities to get behind the proposal and i actually think it's going to create some issues in terms of our ability to get some fundings because of that. i hope that there is an effort to understand that many people do feel left out of this process and that the proposal

to the extent that it relies on things like sales tax which can be' very regressive tool doesn't necessarily address a lot of the concerns that many of these communities have. so i hope that we get to a point where there is actually a united front as a city. i don't think we are there just yet. and so, i don't know that this is the focus of the hearing today, but i want to point that out there because i think we have still some ways to go. >> thank you, supervisor. and in conclusion then, the next steps in light of what supervisor campos said the members of the task force are working with stake holders and a number of equity that has come up. the task force is

aware of the requirements in those areas, federal grants are awarded based on an analysis of equity. the recommendations in the investment plans that have been made within the task force are consistent with those proposed by the mta and transportation authority staff but it does not mean that our work is over or the city's work is over. the next steps is to present the updated plan to the task force and to the mayor's, and to the board of supervisors and the mta and the other departments. there will be additional hearings with that as well as in the capital planning process that will begin with respect to transportation. the task force will continue to communicate the goals and the recommendations and to revise the investment plan as needed

as these steps are taken. again, the task force hasn't defined exactly which projects there is a proposal for a number of improvement that the eastern neighborhoods would fit into, and that we do expect that this money if it is raised through the charter changes in terms of the geo bond as well as the additional fees and taxes would make money available to both citywide as well as eastern neighborhoods. >> i have a question for you. could you tell me which projects are identified in the eastern neighborhood plan that have been included in the capital plan? >> in the capital plan, i would ask that of brian strong or someone from the planning department. >> okay i will let you finish

your presentation and we'll come back to brian for that answer. >> i have concluded unless you have questions about the process or what's in the investment plan. >> could you talk a little bit more about why you are not in favor of isd? >> it's not that the controllers office is not in favor, but we do recognize that there are a number of ways that the city can leverage general fund for capital projects. obviously the general obligation bond is the typical way that the city borrows money to fund infrastructure as the lowest cost to the city. it also allows for a process to evaluate and prioritize the ifd is a concept that is still a very new one. there is only two that exist in the state and neither of them leverage debt

which is what is needed in order to accomplish many of these projects. it's a complex financing mechanism. it's time consuming, it's administratively difficult to do and again we have general obligation bonds for participation which is two common ways we raise money for infrastructure as well as within our own capital plan there is pay as you go with general fund money and there are grants and other federal sources that can be leveraged with a portion of a general fund match in order to make infrastructure improvements in transportation and in parks and in other areas. so, it takes a long time to set up and an ifd the money doesn't come inform many many years. the recommendation from the controllers office and the

mayor's office is to take a look at the way it's done and before entering into debt in order to satisfy some of those requirement. we are leaving the door open to that but there are other ways of funding the projects and that would be our proposal or advice to the board and the mayor. >> are there any other projects under way? >> there is one in carlsbad and rincon. >> that is rincon project been successful? >> again, they have more needs than dollars. there is a long pipeline and as the economy is improving and more construction

is occurring, more money will come in. similar lateral to -- similarly to the impact development that money will come in. >> i just want to speak to the rincon hill that was established by the board of supervisors. we haven't used any funding or there haven't been any sale of the bond proceed. it's untested in terms of the selling of the bond. we are going to pro port to start using that pay as you go. we haven't used it to date. >> i understand that. is carlsbad, california the only other city? >> that's to my understanding yeah. >> i just wanted to fill out the conversation more. budget director with the mayor's office. just also on the ifd

issue. specifically with rincon hill there have not been sales in the past. we've not been able to use that instrument and it's basically like one of the benefits of ifd is we thought we would be able to get money immediately and pay it off over time and because this is a new instrument not used very much in california, we haven't seen the ability to bond that resource. i wanted to highlight for ifd and is the equivalent for administrative hurdles. there is other ifd's that the city has looked at and for example with the core ifd there is special legislation which get additional leverage. they get to pull a larger portion of

the property tax dollar of the state. that is not we have something available to this area here or in rincon hill. from the city's per expect -- perspective we want to make sure we are leveraging the funds and we want to make sure we are using the best financial instrument and not get stuck on a single tool when there is better options that might get us better funds. >> why are we not using ifd? >> there are specific parts they are using it and specifically prioritizing areas for that. >> maybe for another conversation but it was communicated to me that the mayor's budget office was against ifd for the

redevelopment of pier 70s. which is a statement that we can leverage for money on the state. >> i don't know if i can speak to that, but we've moved forward on the partnership and board approval for the port's ifd policy which includes using ifd on their site and making sure we have maximum leverage areas. when we did rincon, we included a policy for the rest of the city and i think there is a lot of conditions there that are administrative conditions that require a real look at specific locations where the ifd would be considered with economic analysis around what the net benefit is as a result of the geographic area surrounding that area and this is a push

for additional community participation through methods like community benefit, through participation in cbd's for example rin conhill. i just think there is a lot of reasons why it does not appear to be the best one. as monique said we can consider but as we see other attractive options as better tools that's where we are focusing our energy. >> thank you for your presentation. next we have tim from mta. he's going to discuss some of the priority transit projects. transportation, okay. >> good morning, supervisors, tim with the san francisco mta.

i'm the director for strategic planning. i'm going to walk through some of the transportation projects and programs in the eastern neighborhoods and really building upon the presentation that they had this morning especially from director ram. on the planning side where the eastern neighborhoods and other areas where being planned to accept this growth, we looked very closely to look at what were going to be the impacts with the transportation system. as we are working more on these plans we are getting more detail in terms of what it's going to do to the local and region markets. this is just pointing to some of the existing trouble markets and there is going to be more on the east side as it comes to

fruition. there is some in the downtown capacity. the system only works with one no matter which line goes into the central core area. they all work together. so really, addressing the core transit capacity in the north eastern part of the city will help the rest of the network. there is also going to be a new travel corridor that is growing within the eastern neighborhoods area within the mission and south of market. so, we are very cognizant of how these markets are impacting our decision on how we prioritize the transportation system. the second area we want to highlight is there is six core areas when it comes to the transit projects in the eastern neighborhood and looking at the role in the land use agreement side which we've not had

experience working with the development on planning department to figure out how we can make the park, work more effectively with these developments and also looking into the areas of these neighborhoods and more specifically our focus on the regional and local transit projects and programs that we are partnering with to improve and then i will touch off the projects and programs and will improve walking and bicycle safety. so, in the december 2011 mta completed a project which was a very large study for transportation. one of the key differences with this transportation study was that it really didn't look at just the eastern area lot by lot because it works as a network so we had to look the end tire

at the entire area south of market. it's a huge part of the city. it was a huge endeavor to say the least. we took a system attic approach. this map shows you that almost all of the corridors we identified are corridors and almost all of them warranted a specific transportation improvement that meet the needs today but also the development growth impacts from future growth in this area. but we have to prioritize it because we couldn't do all the corridors. we had to look at which corridors are currently under going study and which weren't and which that had ability to be leveraged with additional projects so

based on methodology and criteria we focussed on this criteria in the corridor. since completion of the project that build program that -- built up off the work in the plans in the area, we looked at developing a transit design that was incorporated for the transit effectiveness project. that's going through its process right now being designed at least for the transit component and looking at pedestrian safety as well. the folsom corridor that were identified in the project were focused on the central corridor in the environmental impact report that was looking on how to manage and improve